FRANKFURT (AFP)  German luxury sportscar maker Porsche has taken over Volkswagen, the biggest European car manufacturer, after purchasing more than 50 percent of VW shares, Porsche said.
Porsche said in a brief statement late Monday that by buying new VW shares, it "will thus increase its participation to 50.76 percent" of the group's capital, compared with 42 percent before.
The news sent Volkswagen shares rocketing up 13.48 percent in early afternoon trading on the Frankfurt stock market on Tuesday.
The takeover by a family-run company run by billionaire shareholders has been a culture shock for Volkswagen, a sprawling national institution seen as a model for cooperation between shareholders and unions.
Porsche launched its takeover bid in 2005, saying it would turn Volkswagen into a "normal" enterprise and incurring fierce opposition from the unions.
Porsche had initially planned to acquire more than 50 percent of VW's stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
At one point, they traded for more than 1,000 euros (1,350 dollars) per share, making VW briefly the biggest company in the world by stock market valuation.
On Monday, VW shares closed at 254.74 euros, close to the range Porsche had set for itself of between 200-250 euros.
VW said in August that it had overtaken Ford to become the world's third biggest automaker behind General Motors and Toyota.
Porsche is now obliged by Swedish law to make an offer for outstanding shares in truckmaker Scania, in which VW is the dominant shareholder.
But Porsche will offer a minimum price for Scania shares and has no "strategic interest" in the company, the statement said.
Porsche, which makes the 911 sports car and Cayenne sport utility vehicle, plans to raise its stake in VW to more than 75 percent this year, with which it expects to gain total control over the group.
Having more than 75 percent would allow it to seal a so-called domination contract giving it full financial control.
In Germany, a minority investor that owns 25 percent of a company's shares can block strategic decisions, but in the case of VW that level is currently set by law at 20 percent, the amount owned by the state of Lower Saxony, where VW is based.
Porsche has challenged the so-called VW law and has received support from the European Commission, which has threatened to haul Berlin into European court again after a revised version of the law retained the 20 percent minority blocking threshold.
Porsche built up its stake in the much bigger VW through the use of stock options that allowed it to catch markets by surprise last year with the size of its holding.
VW's works committee is wary of the takeover however and of Porsche boss Wendelin Wiedeking, who has crossed swords with trade unions, which are extremely powerful at VW.

VW posted sales of 109 billion euros in 2007, while Porsche, which employs 11,600 workers, reported sales of seven billion euros in its 2006-2007 fiscal year. The IG Metall trade union fears a Porsche takeover would lead to job cuts at German VW plants, despite assurances from Porsche that it is a long-term investor in the auto giant.

the original bug was designed by ferdinand porsche, i thought there was some ownership between the 2 companies prior to this as well. car cos. were buying and selling each other pretty frequently in europe in the '90's.

Volkswagen to recall nearly a half-million cars, because the automaker illegally installed software in its cars to evade standards for reducing smog.

VW used software to detect when the car is undergoing its periodic state emissions testing. Only during such tests are the cars’ full emissions control systems turned on. During normal driving situations, the controls are turned off, allowing the cars to spew as much as 40 times as much pollution as allowed under the Clean Air Act, the E.P.A. said.

“We expected better from Volkswagen,” said Cynthia Giles, the E.P.A.’s assistant administrator for the Office of Enforcement and Compliance. She called the automaker’s actions “a threat to public health.”

The software was designed to conceal the cars’ emission of the pollutant nitrogen oxide, which contributes to the creation of ozone and smog. The pollutants are linked to a range of health problems, including asthma attacks, other respiratory diseases and premature death.

Experts in automotive technology said that disengaging the pollution controls on a diesel-fueled car can yield better performance, including increased torque and acceleration.

“When the pollution controls are functioning on these vehicles, there’s a trade-off between performance and emissions,” said Drew Kodjak, executive director of the International Council on Clean Transportation, a research group. “This is cutting corners.”

It was Mr. Kodjak’s group, in conducting research on diesel vehicles, that first noticed the discrepancy between Volkswagen’s emissions in testing laboratories and on the road. They brought the issue to the attention of the E.P.A., which conducted further tests on the cars, and ultimately discovered the use of the defeat device software.

California has issued a separate notice of violation to the company. California, the E.P.A. and the Justice Department are working together on an investigation of the allegations.

The Justice Department’s investigation could ultimately result in fines or penalties for the company. Under the terms of the Clean Air Act, the Justice Department could impose fines of as much as $37,500 for each recalled vehicle, for a possible total penalty of as much as $18 billion.

The notice of violation is part of a broader, more aggressive enforcement effort by federal regulators on the auto industry. Analysts and activists said it was intended to send a message to automakers that they would be harshly treated for compromising federal rules.

“This is several steps beyond the violations that we’ve seen from other auto companies,” said Tyson Slocum, director of the energy program at Public Citizen, a consumer advocacy group. “They appear to have designed a system with the intention to mislead consumers and the government. If that’s proven true, it’s remarkable and outrageous. It would merit a heck of a lot more than just a recall and a fine. We would see criminal prosecution.”

Volkswagen turns to Porsche boss to steer it out of crisis: sourceThu Sep 24, 2015 Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source close to the matter said on Thursday, as the fallout from the U.S. vehicle emissions test rigging scandal broadened.

Mueller, 62, has been widely tipped to succeed Martin Winterkorn, who quit on Wednesday, when the German carmaker's supervisory board meets on Friday. He will take responsibility for steering Volkswagen through the biggest business crisis in its 78-year history. The crisis deepened on Thursday as officials in Europe and the United States stepped up their investigations. Germany's transport minister said Volkswagen had manipulated tests in Europe too. "We have been informed that also in Europe, vehicles with 1.6 and 2.0 liter diesel engines are affected by the manipulations that are being talked about," Alexander Dobrindt told reporters, adding it was unclear how many vehicles in Europe were affected.

Dobrindt said Europe would agree on new emissions tests in coming months that should take place on roads, rather than in laboratories, and that random checks would be made on all manufacturers. Separately, a group of at least 27 U.S. state attorneys general launched a multi-state investigation of Volkswagen's representations to consumers about its diesel vehicles, and said it will send subpoenas to the automaker. “I am furious that the world’s leading car company wilfully took steps that polluted our environment and deceived consumers,” Maryland Attorney General Brian Frosh said in a statement. In Sacramento, California, that state's top air quality regulator said her agency is preparing a series of actions against Volkswagen in response to the company's admission that it cheated on tailpipe pollution tests. "Right now we are organizing ourselves for a major enforcement action," said Mary Nichols, head of the California Air Resources Board.

Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source close to the matter said on Thursday, as the fallout from the U.S. vehicle emissions test rigging scandal

The state also intends to order a recall of Volkswagen diesel vehicles sold in the state with software that enabled the cars to pass the agency's emissions tests, but then emit far more pollution on the road. Volkswagen has said 11 million cars globally had the software fitted, but it was not activated in the bulk of them. As well as the cost of regulatory fines and potentially refitting cars, Volkswagen faces criminal investigations and lawsuits from cheated customers and possibly shareholders. More immediately, the new CEO will have to restore the confidence of customers and motor dealers, who have expressed frustration at a lack of information about how they will be affected by the scandal.

Mueller has a majority on the 20-member supervisory board, the source said. Volkswagen declined to comment. The board will also dismiss the head of the company's U.S. operations and top engineers at its Audi and Porsche brands, a senior source told Reuters, as it seeks a fresh start. "He is a good choice even though he may be seen as a transitionary CEO until another internal candidate such as VW brand CEO (Herbert) Diess has earned their stripes," Arndt Ellinghorst, an analyst at Evercore ISI investment banking advisory firm, said of Mueller.

India to probe Volkswagen scandal for possible irregularitiesSep 24, 2015: The Indian government has initiated a probe into possible violations by embattled German carmaker Volkswagen and has asked testing agency ARAI to look into the issue.

The government is concerned whether the company dodged emission tests in India on lines similar to what it did in the US, where an investigation is on and can result in possible penalties of over $18 billion for manipulation. "We have requested the Automotive Research Association of India (ARAI) to check up with Volkswagen and find out if this issue is applicable over here. They are inquiring into the matter," heavy industries secretary Rajan Katoch said.

Asked whether the government had taken note of the charges against Volkswagen, Katoch replied, "Yes. This is, in fact, topmost on my mind right now. Obviously, we need to make sure these kinds of things do not happen here. We are studying the matter...if there are any regulatory issues here, they are looked at and plugged." When contacted, a spokesperson for the VW group said he was not aware of the development. "I cannot comment on any such development. We are not aware of this development."

Apart from the US, governments in Europe and some other countries are also looking into possible violations by VW to dodge emission tests. The auto firm has admitted it used a software in some of its diesel engines during emissions tests in the US which enabled manipulation of results. The Heavy Industries Ministry is the nodal authority for implementation of the National Automotive Testing and R&D Infrastructure Project ( NATRIP), under which testing and R&D centres including ARAI have been set up across the country for vehicles.

Road transport and highways secretary Vijay Chhibber also said the department is working in tandem with the heavy industries ministry over the matter. Chhibber said steps such as sending advisories to all states and the auto sector highlighting the government's concerns over the matter are being taken.

Germany's transport minister says that light commercial vehicles at Volkswagen appear to be affected by the scandal over software used to cheat U.S. emissions test. The U.S. Environmental Protection Agency accused VW a week ago of installing the so-called "defeat device" in 482,000 cars sold in the United States. VW later acknowledged that similar software exists in 11 million diesel vehicles worldwide. The German government has said that those included cars in Europe but it's not yet clear how many. German Transport Minister Alexander Dobrindt said Friday: "According to our current information, light commercial vehicles as well as cars at Volkswagen are affected by the improper manipulation of diesel engine emissions." He didn't give details.

2:00 p.m.

Daimler AG, the maker of Mercedes cars, is rejecting claims by a German environmental group that it appears to have been involved in manipulation of emissions data. The Deutsche Umwelthilfe group said Friday that it had information that almost all German manufacturers of diesel cars — including Daimler — exceed emissions limits by such a level that it has to assume illegal devices to reduce nitrogen oxide readings are in play. Daimler on Friday issued a statement strongly denying any manipulation. It said that so-called defeat devices have never been used by the company, and that goes for all diesel and gas engines. It said that it sticks to all laws and rules, and it isn't aware of any measurements showing that its vehicles fail to keep to legal requirements.

1:00 p.m.

Volkswagen CEO Martin Winterkorn, right, and Porsche CEO and member of the board of Volkswagen, Matthias Mueller, left, pose for the media beside a car prior to the company's annual press conference in Berlin, Germany. Volkswagen’s supervisory board is meeting Friday, Sept. 25, 2015 to discuss who to name as CEO after Martin Winterkorn quit the job. Matthias Mueller, the 62-yead-old head of VW’s Porsche unit, emerged as one of the favorites.

Italy's transport minister says spot-checks will be done on at least 1,000 diesel vehicles of all brands following the Volkswagen emissions-rigging scandal. Graziano Delrio said on a late-night talk show that checks will be conducted at dealerships before sale. That will cost 8,000 euros per vehicle, meaning an overall tab of 8 million euros (nearly $9 million). Delrio, citing a "problem of health, trust," said the truth must be established. An Italian consumer group, Altroconsumo, said Friday a class action suit was planned and called on Volkswagen to either correct the software employed in the emissions-rigging or substitute the vehicle. A Turin-based prosecutor specializing in health and pollution probes has ordered checks of Volkswagens, and eventually of other brands, in Italy to see if commercial fraud or environmental damage is involved.

12:20 p.m.

Norwegian authorities have launched an investigation to find out whether the Volkswagen emissions-rigging scandal affects the Nordic country. Norway's economic crimes unit said Friday it will investigate whether "there has been a criminal offense in Norway and whether the fraud has any significance for the cars in question that have been imported to the country." The agency said it was working on the case jointly with the customs and transportation authorities.

Volkswagen to 'rotate staff' to improve oversight20 Dec.`15 - German car giant Volkswagen, scrambling to contain a massive pollution test cheating scandal, said Sunday it would begin rotating staff to keep better tabs on its operations.

Employees in key roles will switch jobs more often than is currently the case, VW supervisory board chief Hans Dieter Poetsch said in an interview with the Welt am Sonntag newspaper. "The relevant employees will only stay a certain amount of time in a specific job and then change," he was quoted as saying. He said the new personnel plan was intended to break up long-standing structures that allowed rules to be broken in secret. Poetsch said the scheme would be introduced along with new oversight mechanisms. "We will bolster checks, determine responsibilities in a clearer way and better implement technical supervision of procedures," he said.

Poetsch added that the "four-eyes principle" of at least two people being involved in key work would become a company watchword. He admitted that some positions were so specialised that frequent rotation could pose challenges. But he said that such jobs could be filled within the Volkswagen group, with people switching, for example, from Audi to Porsche to the VW brand manufacturing divisions. Volkswagen was plunged into its deepest-ever scandal in September, when it was forced to admit it had installed emissions cheating software into 11 million diesel engine vehicles worldwide.

VW was found to have used so-called "defeat devices" that activate emissions controls during testing, then turn them off under normal operations, allowing illegal amounts of nitrogen oxide to spew into the air. The costs facing VW, once seen as the paragon of German industry, are still incalculable, in terms of reputation and global earnings and because it faces billions in possible fines and legal costs. Chief executive Martin Winterkorn resigned in the wake of the allegations but insisted he knew nothing about the scam.

VW sued by US justice department4 January 2016 - The US justice department is suing Volkswagen over the emissions scandal that saw the German car giant fit software in millions of cars to cheat emissions tests.

In September last year, following an investigation by US regulators, VW admitted fitting the so-called defeat device on 11 million vehicles globally. The scandal has hit sales of VWs worldwide. The company has put aside billions of euros to deal with the fallout.

The lawsuit, on behalf of the US Environmental Protection Agency (EPA), was filed on Monday in a federal court in Detroit, Michigan. "The complaint alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA's standards, resulting in harmful air pollution," the filing said.

​

It also alleges that VW "violated" clean air laws by selling cars that were different in design from those originally cleared for sale by the EPA. "With today's filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution," said assistant administrator Cynthia Giles for the EPA's Office of Enforcement and Compliance Assurance. "So far, recall discussions with the company have not produced an acceptable way forward. These discussions will continue in parallel with the federal court action."

The department said the filing was just the first step in "bringing Volkswagen to justice". The carmaker is also facing separate criminal charges, and a raft of class-action lawsuits filed by VW owners.

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